TOKYO – Japan’s central bank is escalating the fight against deflation by offering more cheap loans to banks.

In a split decision, the Bank of Japan’s policy board decided Wednesday to double the amount available under its short-term lending program to 20 trillion yen ($221 billion) from 10 trillion yen.

Introduced in December, the three-month loans at a fixed rate of 0.1 percent are intended to nourish credit flows and reduce longer-term interest rates.

The seven-member board voted unanimously to keep its key interest rate at a super lean 0.1 percent. In a statement, it pledged to maintain an “extremely accommodative financial environment” for the time being. The central bank has not changed the overnight call rate target since December 2008, when the policy board lowered it from 0.3 percent.

The central bank’s expected move came amid growing political pressure to take stronger action to combat falling prices, which threaten to undermine Japan’s patchy economic recovery.

“The Bank recognizes that it is a critical challenge for Japan’s economy to overcome deflation and return to a sustainable growth path with price stability,” the central bank said. “To this end, the Bank will continue to consistently make contributions as a central bank.”

The world’s second biggest economy grew at an annualized pace of 3.8 percent in the fourth quarter thanks to robust exports, but that has done little to bolster demand or wages at home. Japan’s key consumer price index, which fell for the 11th straight month in January, is expected to keep declining for the next two years.

The troubling outlook separates Japan from growing economies elsewhere in Asia, where central banks are winding down stimulus measures and tightening monetary policy low interest personal loan. Interests rates are rising in Australia and Malaysia, while central banks in China and India are reducing liquidity to control inflation.

Meanwhile, Japan struggles with a familiar foe. The country has battled periods of deflation since the “Lost Decade” in the 1990s. Lower prices may seem like a good thing, but it hamstrings economic growth by shrinking company profits, sparking wage cuts and causing consumers to postpone purchases. It also magnifies debt burdens.

The government’s ability to counter deflation with increased spending is constrained because of Japan’s ballooning debt, the highest among industrialized countries and rising. Prime Minister Yukio Hatoyama has proposed a record $1 trillion budget for the next fiscal year starting April, which will require the government to issue some 44.3 trillion yen ($492 billion) in bonds.

With limited room to maneuver on the fiscal policy front, Finance Minister Naoto Kan has repeatedly called on the central bank to do more. He wants deflation gone by the end of the year and has suggested establishing an inflation target.

The latest move may appease the government for now. But it falls short of a meaningful fight against deflation, economists say.

Richard Jerram, chief economist at Macquarie Securities in Japan, described a temporary increase in liquidity or even a modest interest rate cut as “irrelevant.” Japan needs aggressive, government-led changes to shock prices higher, he writes in a recent report.

“Japan is in such a deep deflationary hole that marginal policy changes are likely to be ineffective,” he said.

Bank of Japan expands lending to fight deflation

BERLIN — As protesters upset with sharp cuts in Greece’s budget clashed with police in Athens on Friday, talks here between Greek and German leaders ended with Germany making no public offers of financial support.

In an appearance following their meeting, the German chancellor, Angela Merkel, praised Greece’s latest austerity measures as an “inordinately important step,” and the Greek prime minister, George A. Papandreou, defended the package — which has provoked outrage at home — as critical to stabilizing his country’s finances.

“We had to take difficult decisions, but these decisions were necessary if we are to lead our country out of the crisis,” he said. He added that he had not asked Germany for financial support.

In the Greek capital, meanwhile, strikes hit schools, hospitals and public transportation and police used tear gas on the rioters in Athens as Parliament adopted its latest austerity package. Seven police officers were injured in the protests, among the most violent since Greece’s financial crisis hit, and at least five demonstrators were arrested.

The oversubscribed sale of nearly $7 billion in bonds on Thursday gave the Greek government much-needed breathing room in its scramble for new loans, and also took pressure off Mrs. Merkel to make a firm commitment to help Greece out of its fiscal predicament.

The two countries have been locked in an increasingly bitter war of words fought through the news media and lower-ranking politicians over Greece’s debt problems and the expectation that taxpayers from Germany, Europe’s largest economy, would bail them out. The dispute has exposed a gap between the declarations of solidarity in Europe and the nationalist sentiments that still rule public opinion.

While the Greek government is struggling to convince markets to help it bridge its financing gap, there is plenty at stake for Germany as well. With $43.6 billion in loans, German banks have the third-highest exposure to Greece. Deutsche Bank’s chief executive, Josef Ackermann, even flew to Athens last week to meet with Mr. Papandreou and other senior officials, sparking rumors a deal with the Germans was imminent.

A bailout of Greece would be far less expensive than the potential fallout from a chain reaction a debt crises leading to larger countries with budget woes, like Spain and Italy. But Mrs. Merkel, known at home for her patience and often described by friends and foes alike as a consummate political poker player, has stuck to platitudes, generalities and lectures that the Greeks must do their “own homework.”

“So far she’s kept her cards hidden, which I think is smart,” said Michael Stürmer, the chief correspondent for the German newspaper Die Welt. “In principle, her tactic is to hold herself in reserve, hold Germany in reserve.”

Even before Mr. Papandreou arrived in Berlin Friday, the German economy minister, Rainer Brüderle, had a stark message for him.

“The German government does not intend to give one cent,” Mr. Brüderle told reporters here in the capital.

An interview with Mr. Papandreou published Friday in the German daily the Frankfurter Allgemeine Zeitung ahead of his visit, aimed to calm public sentiment in Germany.

“We have not asked the German taxpayers to rescue us, to pay for our retirements and vacations,” Mr. Papandreou said. “We are not asking for money. What we need is the support of the E.U. and our European partners so that we can receive credit from the market at better terms inferred heaters.” Relations between the two countries have taken a sour turn in recent weeks as German news media outlets accused the Greeks of corruption, tax evasion and falsifying their budget numbers to join the euro zone. Greek politicians in turn have asked for reparations for damage inflicted by Nazi occupiers during World War II.

Germany has the most fiscal flexibility among European Union members to help Greece, but public opposition to any assistance has been vehement. The debate has crystallized broader German misgivings about the European project into a public outcry.

“It’s like a mosaic and the Greece crisis is the last stone,” said Wolfgang Nowak, a former senior adviser to Mrs. Merkel’s predecessor, Gerhard Schröder, and head of Deutsche Bank’s International Forum. “More and more there is the feeling that French farmers, Polish farmers, Spanish infrastructure, that Europe is not a community but something held together by a German pay check.”

While protesters have not taken to the streets of Berlin in large numbers the way they have in Athens, Mrs. Merkel faces rising dissatisfaction at home. A new poll Friday found nearly three-quarters of Germans critical of her government’s performance since she was reelected last September.

With a crucial election in Germany’s largest state, North Rhine-Westphalia, barely two months away, Mrs. Merkel would be taking an enormous political risk by pledging support to Greece, which is seen as having a bloated public sector and excessively generous benefits, even by European standards.

“There would be no understanding in the population or in her own party if Germany would go it alone with help for Greece,” said Jürgen Falter, a political science professor at the University of Mainz.

The German press has been filled with stories detailing the tens of billions of dollars worth of European Union funds Greece has received in recent years. At the same time, stories of tax-dodging doctors and marinas filled with yachts have become staples of news reports here.

One of the most-cited statistics, and for Germans most infuriating, comes from the Organization for Economic Cooperation and Development, showing that the median Greek retiree takes home 95.7 of his or her last salary, while the German pensioner gets only 43 percent. That is viewed as evidence that the Germans have taken painful cuts in their benefits to keep industry competitive and budget deficits under control, while the Greeks have not.

“We Europeans, despite our long history of cooperation, often indulge in the habit of throwing stones at each other, forgetting that we live in a glass house,” said Loukas Tsoukalis, president of the Hellenic Foundation for European and Foreign Policy, an Athens research group. The good news, according to Mr. Tsoukalis, was that a large majority of Greeks recognized that the problem was theirs to solve.

“It’s really something new that you have a government that announces pretty unpleasant measures that will have a real effect on people’s standard of living, and you have 75 percent of Greeks, depending on the opinion poll, who say they agree with the measures,” said Mr. Tsoukalis.

Niki Kitsantonis contributed reporting from Athens.

Germany Makes No Promise of Financial Support to Greece

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ALAMEDA, Calif. – Celera Corp., a laboratory testing products and disease management services company, reported a fourth-quarter profit on lower costs and a tax benefit.

The company said it earned $7.8 million, or 9 cents per share, compared with a loss of $6.1 million, or 8 cents per share, during the same period a year prior. Revenue fell 15 percent to $40 million from $47.3 million.

Analysts polled by Thomson Reuters expected a loss of 3 cents per share on revenue of $39.6 million.

Celera was part of Applera Corp. until July 2008, but was separated from Applera after that company’s other component, Applied Biosystems, was sold to Invitrogen Corp. Those two companies combined into Life Technologies Corp.

Lab services revenue fell 25 percent to $22 million, while products revenue increased 1 percent to $11.3 million. Corporate revenue fell 3 percent to $6.7 million.

Meanwhile, selling and general expenses fell 17 percent to $22.4 million. The company had a tax benefit of $9 payday loans guaranteed no fax.1 million.

For the full year, the company lost $32.7 million, or 40 cents per share, compared with a loss of $124.6 million, or $1.56 per share, in 2008. Revenue fell to $167.1 million from $175.2 million.

Looking ahead, the company expects a loss between 11 cents and 13 cents per share on revenue between $30 million and $32million in the first quarter. It expects a loss between 15 cents and 21 cents per share on revenue between $145 million and $155 million in 2010.

Analysts expect a loss of 1 cent per share on revenue of $40.5 million in the first quarter and profit of 4 cents per share on revenue of $173.5 million in 2010.

Shares of Celera rose 1 cent to $6.15 in after-hours trading after falling 1 cent to close at $6.14 during the regular trading session.

Celera sees 4Q profit on tax benefit, lower costs

Hot News: BJs Wholesale Club 4Q profit climbs, sales rise

Warner Chilcott PLC said Monday that its fourth-quarter loss narrowed as its acquisition of Procter & Gamble’s global branded prescription drug unit added to revenue.

The Irish company, which makes women’s health and dermatology products, recorded a loss of $9.5 million, or 4 cents per share, in the three months that ended Dec. 31. That compares with a loss of $115.7 million, or 46 cents per share, in the same quarter of 2008.

Revenue more than doubled to $686.2 million.

Not counting one-time items like a $127 million amortization charge, adjusted earnings were 65 cents per share for the quarter.

The company also recorded a $33.5 million gain in the quarter from the sale of certain inventories to Leo Pharma in connection with a deal it completed in the third quarter of 2009.

Analysts polled by Thomson Reuters expected, on average, earnings of 60 cents per share on $588.1 million in revenue business cards.

In October, Warner Chilcott completed a $3.1 billion buyout of P&G’s global branded prescription drug unit. The company gained a portfolio of products worth about $2.3 billion in annual revenue including blockbuster osteoporosis drug Actonel.

Products from P&G contributed a total of $351.8 million in revenue growth in the fourth quarter. Aside from Actonel, that included the ulcerative colitis treatment Asacol and Enablex, a treatment for overactive bladders.

Warner Chilcott also said selling, general and administrative expenses more than quintupled in the quarter, to $277.5 million, due in part to costs tied to the P&G deal.

The company’s shares fell 67 cents, or 2.5 percent, to close at $26.55.

New products help Warner Chilcott narrow 4Q loss

BRUSSELS – European Union leaders on Thursday offered Greece moral support but no money to help it weather a debt crisis — vague assurances that didn’t calm the market fear that has shaken the entire EU and undermined the shared euro currency.

The 16 countries that use the euro said only that they “will take determined and coordinated action, if needed, to safeguard financial stability in the euro as a whole.”

But no money or loan guarantees were put on the table in the statement from a summit meeting in Brussels.

Markets appeared disappointed at not seeing a concrete backstop to ward off a potential default by Greece, which needs to borrow euro54 billion this year to cover its outsized budget deficit.

The Greek crisis is the leading edge of the debt troubles that have hit governments in the developed world during the world’s three years of economic turbulence, as they run up deficits bailing out banks and stimulating their economies.

A default would be a serious blow to Europe’s monetary union, and fears that Athens might not be able to pay its debts have already led markets demanding higher borrowing costs for Greece.

There are also concerns that the contagion could spread to other financially wobbly countries, such as Portugal and Spain, and that other governments will have to pay more to borrow.

The leaders said Greece had not requested financial support and called on Athens to push through “in a rigorous and determined manner” its budget cuts that have already triggered protests and strikes — and to prepare bigger cuts if needed.

Neil Mackinnon, global macro strategist at VTB Capital said, “it just looks like a pledge of solidarity, but no actual details of a program which is why the euro is still in the doldrums.”

“They have to stop this right now…they are firefighting at the moment but they need to put out this fire right now,” said Neil Mellor, currency strategist at Bank of New York Mellon. “It won’t appease those looking for a bona fide rescue plan.”

The euro hit a new nine-month low of $1.3635, having been as high as $1.38 earlier in the day on hopes of more substantive Greek bailout news. It was $1.51 in December. German and French stocks were down, while shares in Britain, which doesn’t use the euro, rose.

Markets see Greece at risk of defaulting on its massive borrowings because it faces several years of sluggish growth and mounting debt that current austerity plans may not be able to stem payday loans guaranteed no fax.

Those fiscal problems have also exposed the vulnerability of Europe’s monetary union in times of crisis. Euro members countries agree to limit their budget deficits to 3 percent of gross domestic output because overspending can undermine their shared currency. But those deficit rules have been broken repeatedly and have not been prevented Greece and other countries from trouble.

The leaders may make more comments on Greece later in the day.

Luxembourg government spokesman Guy Schuller said no firm bailout figures are on the table at this point, but many options are under discussion. “Paris and Berlin are at the head” of efforts that would be shared by all 16 eurozone nations, he said.

Among possibilities for Greece that have been floated in recent days are EU member countries guaranteeing Greece’s debt, a special credit line for the Greek government, and bilateral loans.

But German Chancellor Angela Merkel talked down a full financial bailout, but said other European governments would not leave Greece in the lurch.

“We won’t let Greece be alone but there are rules and they have to be respected and based on that we’ll issue a statement and an explanation,” she said.

Greece needs to borrow euro54 billion (nearly $75 billion) from bond markets this year to plug its budget gap. So far it has been able to borrow from markets but is facing increasing interest costs as markets price in higher risk of a possible default.

Greek Prime Minister George Papandreou has promised to reduce Greece’s deficit to 8.7 percent of gross domestic product this year, from 12.7 percent last year, the highest in the EU and four times above an EU limit.

But markets doubt Greece’s credibility after it admitted falsifying statistics for years to make the deficit look smaller. They also worry that Greece can’t carry out any cuts because it risks social unrest.

Greek workers shut down schools, grounded flights and walked out of hospitals Wednesday to protest austerity measures, and a much broader strike is planned for Feb. 24.

___

Associated Press writers Pan Pylas, Angela Charlton and Leslie Patton in Brussels contributed to this report.

EU leaders offer Greece support, but no money

OSLO – Norwegian telecommunications group Telenor ASA on Wednesday reported a 25 percent jump in fourth-quarter profits, primarily thanks to growth in Asia, but said it may have to cut costs this year to strengthen its finances.

Net profit rose to 2.5 billion kroner ($425 million) in the October-December period, from just under 2 billion kroner a year earlier. Revenues slipped to 24.2 billion kroner during that time, from 25.9 billion kroner in the fourth quarter of 2008. That excludes pro forma figures from Telenor’s troubled Ukrainian holding Kyivstar that were also provided for comparative reasons.

Telenor shares dropped 3 percent, to 75.85 kroner ($12.84), in morning trading in Oslo.

A strong quarter for Telenor in the Pakistani, Thai and Bangladeshi markets, as well as in the company’s consistently strong Scandinavian operations, contributed to a sustained revenue stream.

New subscriptions in these markets offset slumping revenues from Telenor’s operations in Eastern Europe, where the global financial crunch has depressed the telecoms market. Telenor subscriptions grew by 2 million in the fourth quarter.

Carnegie analyst Espen Torgersen said the result was “substantially over market expectation free credit scores.” He attributed the negative market reaction to Telenor’s lower-than-expected outlook for 2010.

Telenor CEO Jon Fredrik Baksaas warned of potential cost-cutting measures in 2010 to cope with hits to the group’s finances in the wake of the financial crisis.

Telenor “will strive to secure our market positions, while capturing organic growth opportunities. We will continue to implement necessary efficiency measures and provide innovative and viable solutions to our customers,” Baksaas said.

Among its priorities in 2010 are the expansion of its Indian subsidiary, which launched on Dec. 22, and the end of a long and expensive legal battle with Russian conglomerate Alfa Group over joint operations in Russia and Ukraine.

Telenor employs more than 40,000 people in 14 countries and claims 174 million subscribers worldwide.

___

On the Net:

http://www.telenor.com

Norway’s Telenor posts 25 pct rise in Q4 profits

I have a frequent and pleasant daydream in which the Virginia lottery board calls and says, "Congratulations! You've won the highest jackpot ever! Would you like to take that in a lump sum or divided up over 30 years?" This is truly the stuff of fantasy, though, particularly because I don't buy lottery tickets. Much more realistic for my family is what to do in the face of too many important financial goals and too little money to fund them all.

For example, we have:

Several children to send to college.A retirement to plan for.The desire for an extra-large emergency fund.

In addition, our 1994 Honda Civic and 2000 Dodge Caravan will someday go to the great junkyard in the sky, leaving us scrambling for replacements. And somewhere along the line, we'd like to take a trip to China when our youngest (who was adopted from Jiangsu province) is old enough to remember it.

How does the average American family meet these kinds of goals? And which should take precedence if you can't contribute to them all? If you have similar questions and concerns, here's how you can set about prioritizing your goals.

Goal 1: Emergency FundIf you can accomplish only one of your goals, this is it. Saving at least $200 to $300 a month in a high-yield savings account would be a good first step. Your emergency fund should include enough money to pay for three to six months' worth of basic living expenses (rent or mortgage, utilities, medical bills, groceries, and the like).

Don't let the large sum intimidate you into not saving; set a goal of having your emergency fund fully funded within three years. If your initial goal is to save $10,000, it'll take just $278 a month for 36 months to reach that milestone.

In a true emergency, you can rely on credit cards. But if you can't pay off that debt soon, you'll quickly find yourself going backward financially. Better to have the money squirreled away for a stormy day and to pretend it doesn't exist until disaster strikes.

Get creative: Make a deal with yourself that any "found" or windfall money will go to your emergency fund. Whether it's a tax refund check, cash back on a credit card, or a gift check from great-uncle Joe, deposit it immediately in your savings account. Hold a yearly yard sale with all proceeds to go to your retirement fund.

Goal 2: RetirementSecond (or even better, concurrently), fund your retirement, especially if your contributions to your work plan are matched by your employer (that's free money — plus tax breaks — that you shouldn't pass up). If you don't save for retirement, you won't be able to retire.

Get creative: Once a debt is paid off (for example, the $185 a month you pay on your college loans) continue taking out $185, but now designate it for retirement business cards. That's a painless way to bulk up your savings.

Goal 3: Save for CollegeIt may feel disloyal to many of you to put your children's higher education funds close to the bottom of the list. After all, we're used to putting our kids' needs first in most every other way. However, think about it this way: An emergency requires that you access money because you so desperately need it. Taking money out of a college account such as a 529 savings plan means that the earnings are taxed as ordinary income, plus you'll be slapped with a 10% penalty.

If you don't save for your kids' education, they aren't out of luck; there are scholarships and loans that can fund their higher education needs. No such resources are available if you didn't save for your retirement; you can't borrow your way into a retirement income, and there aren't Golden Years scholarships.

Get creative: If you'll be using a credit card anyway, why not sign up for a Upromise credit card that lets you save for your child's college education while you spend? When you use these cards at participating merchants, you'll get a small rebate deposited into a 529 savings account for your child. Grandparents can sign up too and link their cards to your child's account.

Goal 4: Vacation FundAs a mental-health therapist, it pains me to put this at the very bottom of the list. After all, a well-balanced life includes relaxation and fun, especially in today's fast-paced world. Time away can help you put things into perspective and help your cares melt away. But the hard truth is that a vacation is a luxury that someone without an emergency fund can't really afford to take. That doesn't mean you shouldn't go for a cheaper version of R&R, however.

Get creative: Cut one of your household perks: Switch to a lower tier of cable, or cancel altogether, cut your lawn yourself, reduce your cell phone charges, or go out to eat less. A savings of just $5 a day adds up to a nifty $1,825 in one year.

In an ideal world, all of us would have enough money for all of the things we want to do. But if your real world involves making tough choices, start with establishing an emergency fund, and follow this roadmap all the way to financial security.

For more Foolishness:

And the Worst Stock for 2010 Is Why Are Homeowners Idiots?6 Companies You Can Buy Today

Juggling Your Financial Goals

TOKYO – Japan’s trade minister is urging Toyota Motor Corp. to secure the confidence of car buyers in the wake of massive global recalls.

“The scale of the recalls is huge. The situation is serious. It points to the possible dangers a global economy can bring,” Trade Minister Masayuki Naoshima told reporters Friday.

“I would like Toyota to respond properly to secure consumer confidence.”

Toyota — the world’s largest automaker — has recalled 7 payday loans.65 million vehicles in the U.S. over problems with gas pedals and floor mats. It recalled 75,500 vehicles in China for the same acceleration pedal problem.

The auto giant also said it would recall vehicles in Europe due to the accelerator problem, but said the number of recalled vehicles has yet to be determined.

Japan urges Toyota to secure consumer confidence

AMSTERDAM – The Dutch financial regulator says it has suspended trading in shares of luxury carmaker Spyker Cars NV Tuesday in expectation of a press release.

The regulator said Tuesday it stopped trading “pending a press statement” by Spyker.

Spyker’s shares leapt 70 percent Monday on speculation investors in the loss-making Spyker will buy Saab Automotive from General Motors Co., a deal which could help Spyker.

The companies said Monday they were in talks but have not reached a deal.

Spyker spokesman Mike Stainton has declined comment on why trading was suspended. Shares were up 2.8 percent at euro3.908 ($5.50) before trading was halted Tuesday.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

AMSTERDAM (AP) — The Dutch financial regulator says it has suspended trading in shares of luxury carmaker Spyker Cars NV Tuesday in expectation of a press release payday loans online.

The regulator said Tuesday it stopped trading “pending a press statement” by Spyker.

Spyker’s shares leapt 70 percent Monday on speculation investors in the loss-making Spyker will buy Saab Automotive from General Motors Co., a deal which could help Spyker.

The companies said Monday they were in talks but have not reached a deal.

Spyker spokesman Mike Stainton has declined comment on why trading was suspended. Shares were up 2.8 percent at euro2.908 before trading was halted Tuesday.

Trading in shares of carmaker Spyker suspended

Hot News: China Rebuffs Clinton on Internet Warning

NEW YORK (MarketWatch) — Stocks suffered the worst one-day decline of 2010 so far, led by the financial sector, which slid after J.P. Morgan Chase’s announcement of weaker-than-expected revenue and a glum outlook.

S&P 500 (1 YEAR)

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The Dow Jones Industrial Average , which hadn’t posted a daily decline of more than 37 points in January before Friday, ended down 100.75 points, or 0.9%, at 10,609.80.

The average racked up a triple-digit point loss in the first hour of trading and never quite recovered, hurt by selling across every sector.

Twenty-seven of the Dow’s 30 components were lower, with financial companies suffering the worst losses. Bank of America Corp. was off 3.3% and J.P. Morgan Chase fell 2.3% after it announced its results prior to the opening bell. The bank’s fourth-quarter earnings quadrupled, exceeding forecasts, but its revenue came in below analysts’ estimates.

Chief Executive James Dimon warned the banking giant is cautious about the future, noting “consumer-credit costs remain high, and weak employment and home prices persist.”

That message was the opposite of what traders have been hoping to hear since the start of the broader fourth-quarter reporting season on Monday.

While participants have welcomed improving corporate bottom lines in the last few quarters, improvements in revenue have been hard to come by.

Dow component Intel Corp. , which released its earnings report late Thursday, was off 3.2%. The chip maker’s fourth-quarter profit surged nearly 10-fold from the depressed year-earlier period, as revenue jumped 28% payday loans. However, analysts and investors are wondering whether there’s more room for the stock to climb after its most profitable quarter in history.

Some participants have similar concerns about the market as a whole, considering that major indexes entered trading Friday at 15-month highs despite lingering weakness in the U.S. economy.

Hot Stocks: Financials Weak After J.P. Morgan

J.P. Morgan Chase’s retreat sets bearish tone for the banking sector. Bank’s report of higher profit is overshadowed by CEO Jamie Dimon’s cautious remarks. Greg Morcroft reports.

“To have two marquee-name companies like J.P. Morgan and Intel put out their earnings and have the market react like this is a very bad sign,” suggesting that a broader correction may be in store, said strategist Bill King, of M. Ramsey King Securities. “The flow of institutional money into the market has really dried up; no one wants to be buying at these levels.”

The technology-heavy Nasdaq Composite fell 1.2%. The Standard & Poor’s 500 fell 1%. All its sectors fell, led by a 2% pullback in financials.

Economic data did little to offset investors’ earnings jitters. A new reading of consumer sentiment was worse than expected, though data on manufacturing in the New York region were surprisingly strong. Readings of consumer prices and industrial production were in line with Wall Street’s forecasts.

The dollar was higher against the euro but lower against the yen. Treasurys edged higher, with the 10-year note up 16/32 to yield 3.682%. Crude-oil futures slipped to $78 a barrel and gold futures also moved lower.

Market Snapshot: Stocks post worst one-day drop of 2010